With Summer well underway, biotech penny stocks are heating up. Although the pandemic was responsible for the major biotech rally we witnessed last year, now, investors seem to be focused on these penny stocks regardless of their involvement in Covid.
One thing to keep in mind is that you should know every detail you can about a prospective company. This means understanding what drugs it is working on, how far those compounds are in the trial stages, and what type of funding the company has. These three questions alone will give you great insight into the success or failure that a biotech penny stock could have.
And with hundreds to choose from, it is not easy to pick the best ones for your watchlist. But, with the right research on hand, it can be much easier than previously imagined. With that in mind, here are seven biotech penny stocks for your Summer 2021 watchlist.7 Biotech Penny Stocks to Watch Right Now
- Acasti Pharma Inc. (NASDAQ: ACST)
- Enzolytics Inc. (OTC: ENZC)
- Adamis Pharmaceuticals Corp. (NASDAQ: ADMP)
- Jaguar Health Inc. (NASDAQ: JAGX)
- BIOLASE Inc. (NASDAQ: BIOL)
- Ampio Pharmaceuticals Inc. (NYSE: AMPE)
- Northwest Biotherapeutics Inc. (OTC: NWBO)
When considering biotech penny stocks, an interesting one to look at right now is Acasti Pharmaceuticals. This biopharmaceutical company works on the production of innovative research and development on prescription drugs using omega-3 fatty acids. As a derivative of krill oil, these fatty acids have shown large potential in lowering triglycerides in patients suffering from hypertriglyceridemia.
Currently, ACST has achieved Phase 3 clinical trials for CaPre, one of its staple products. It has shown a 30.5% reduction in triglycerides levels at around 12 weeks and a 35.7% reduction in 26 weeks. Two TRILOGY trials are completed, with neither reaching statistical significance for the primary endpoint.
However, this is not the end of the runway for these trials. More testing on this compound will likely occur in near future. And with any biotech company, trials can take months if not years. So, short-term data is not something to worry about too much. Considering this, will ACST be on your watchlist?Enzolytics Inc. (OTC: ENZC)
Another biotech company worth checking out right now is Enzolytics. This company is specifically focusing on the commercialization of its novel proteins and monoclonal antibodies. These proprietary findings are used in the treatment of infectious diseases. Compound ITV-1 (Immune Therapeutic Vaccine-1) has been seen to be effective in the treatment of HIV/AIDS, which is one of its leading targets right now.
Much of its current work is in the production of human monoclonal antibodies, which are a largely studied component in the fight against HIV, rabies, influenza A/B, tetanus, and diphtheria. Currently, these monoclonal antibodies are being employed to produce therapeutics for diseases including SARS-CoV-2 and HTLV-1. While it has yet to fully commercialize one of these products, the data is largely encouraging. So with that in mind, what do you think of this penny stock?Adamis Pharmaceuticals Corp. (NASDAQ: ADMP)
Biopharmaceutical penny stocks are in high demand due to the ongoing pandemic. The industry as a whole has shown tremendous growth over the past couple of quarters. Such is the case with Adamis Pharmaceuticals. This biotech company has grown over 100% in the past YTD chart, focusing on therapeutic research and development. These therapeutics include those for allergies, opioid overdose, respiratory and inflammatory diseases as well as other prominent ailments.
Currently, its naloxone injection product, ZIMHI, is under FDA review. This treatment is in use for opioid overdose, a rising problem in not only the U.S. but other countries. Additional products in Adamis’ pipeline include therapeutics for acute respiratory diseases, like SARS-CoV-2, influenza A/B, and COPD. One of its subsidiary companies, US Compounding Inc, is responsible for compounding sterile and nonsterile prescription drugs for use in both human and veterinary hospitals. All of this gives ADMP a very broad reach in the biotech industry. Given all this, will ADMP be on your list of penny stocks to watch?Jaguar Health Inc. (NASDAQ: JAGX)
Another commercial-stage pharmaceutical company worth checking out right now is Jaguar Health. This is a company that specifically operates in the development of innovative and sustainably derived GI products for global use. It has additional subsidiary companies including Napo Pharmaceuticals, which develops and commercializes human GI therapies for the global marketplace.
Its staple product at the moment, Mytesi, has been approved by the FDA for symptomatic relief of noninfectious diarrhea for adult patients with HIV/AIDS. Crofelemer, a botanical drug extracted from red bark sap, is the main active ingredient in the drug itself. JAGX has the primary goal to develop plant-based prescription medications through the use of its large IP portfolio as well as a strong pipeline. All of this could make JAGX stock worth keeping an eye on.BIOLASE Inc. (NASDAQ: BIOL)
Biotech penny stocks are not only restricted to pharmaceutical drug development but rather some produce medical technology as well. BIOLASE is a medical device company that specifically focuses on dental laser systems. As a current market leader, it creates devices that are minimally invasive and capable of a broad range of procedures. Some of the laser applications include cosmetic procedures, restorative work, and surgical applications.
BIOL has sold over 41,000 systems worldwide and has partnered with EdgeEndo to develop a Laser-Assisted Microfluidic Irrigation device for endodontists. Disinfecting techniques are a crucial part of any type of dental procedure, especially surgery. The CEO of BIOLASE was very pleased with the work being done with EdgeEndo and looks forward to the mutually beneficial relationship. As a leader in a market with largely untapped potential, BIOL stock is an interesting penny stock to keep an eye on right now.Ampio Pharmaceuticals Inc. (NYSE: AMPE)
Another biopharmaceutical company to watch right now is Ampio Pharmaceuticals. With the rise of immunology-based therapies, this company is currently in focus for many investors. ADMP is primarily focused on immunology-based therapies meant to treat prevalent inflammatory conditions. Ampion is AMPE’s lead product and is backed by strong patents and IP protection that runs through 2037. And recently, the company has worked to prove the potential of Ampion for those suffering from Covid-19.
“We saw strong, positive results in our Phase I trial, reducing all-cause mortality in COVID-19 respiratory distress by 78%. If this Phase II study further confirms the efficacy results seen in our Phase I study, I can envision moving forward quickly with an application for Emergency Use Authorization for Ampion in treating patients suffering from respiratory distress due to COVID-19.”President and CEO of Ampio, Michael Macaluso
Anything related to Covid-19 is big news right now, and this is no exception. So keeping in mind its work with Ampion, AMPE stock could be worth watching.Northwest Biotherapeutics Inc. (OTC: NWBO)
The last biotech penny stock on this list is Northwest Biotherapeutics. This biopharmaceutical company is currently focusing on the development of immunotherapies against a variety of different cancers. Specifically, NWBO is developing vaccines, meant to treat a broad range of solid tumor cancers, to reduce the harm caused by chemotherapy drugs.
The lead product of Northwest Biotherapeutics is DCVax-L. This drug is currently in its Phase 3 trial. It’s using a 348-person study for patients diagnosed with glioblastoma multiforme (GBM). This is an aggressive and very lethal type of brain cancer. Other variations of this drug are in use in similar trials, but are all in different stages of testing. Some of the treatments include late-stage ovarian cancer, prostate cancer, and inoperable solid tumor cancers. What do you think of NWBO as a potential penny stock for your list in July?Are Biotech Penny Stocks Worth Investing In?
Investing in biotech stocks all comes down to your trading strategy. If you are looking for low-volatility penny stocks to buy, certain companies may be better options for your portfolio.
However, if you are the opposite, there are plenty of biotech penny stocks to watch right now. Regardless, know what type of trader you are, and use that to your advantage. With that in mind, are biotech penny stocks worth it?